Port rationalisation off the agenda for now

26 February 2009
Media Release
For immediate release

Port rationalisation off the agenda for now

Port of Tauranga has declined to advance preliminary discussions recently initiated by Ports of Auckland about merging the two ports’ container businesses, Ports of Auckland Chairman Gary Judd said today.

Mr Judd said Ports of Auckland had approached Port of Tauranga, with the backing of Auckland Regional Holdings and Auckland Regional Council, on the grounds that such a merger would deliver obvious synergies, cost savings and benefits to all of New Zealand.

“We saw an opportunity to do something that would benefit New Zealand,” Mr Judd said.

“Tauranga’s decision to withdraw, despite solid evidence of the benefits to shareholders and ratepayers in both regions, is disappointing.”

Mr Judd also confirmed that Ports of Auckland would not be pursuing its planned acquisition of Port of Tauranga’s container business.

Mr Judd said comments by Port of Tauranga made in August 2008 indicating that such an acquisition would be highly unwelcome, and the deteriorating external economic environment, were factors behind the decision.

Mr Judd said there was wide industry agreement over the need for rationalisation within the port sector.

ENDS

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